Posted on 04/11/2017 10:26:50 AM PDT by SeekAndFind
Calls for rent control are heating up across the Gilded State, and not just from Silicon Valley either. From Santa Rosa to San Diego to Alameda to even Sacramento, we are seeing the affordable housing rhetoric move even deeper into the suburbs. Where once rent control was the province of high density urban areas, it is becoming the next new push for the entitlement generation.
Simply put, there are more voters as renters than landlords. One thing government has become very good at as of late, especially in California, is beating up the ballot box minority. Business owners are not the only one. Now add to that anyone with the audacity to attempt to earn a return on invested property.
This is dangerous ground.
All advanced, civilized societies are predicated on the advent of private property suddenly being allowed into law, not seized, and that is exactly what rent control is; the seizing of property outright by government.
An argument could be made that taxes, too, are a seizing of private property in the form of your time and your life's effort and they would be right. Property however, beyond the annual taxes assessed, is tangibly affected as it is raked by statist price control agents and permanently impaired. The asset value of a recently controlled property plummets almost immediately upon newly implemented legislation sometimes dropping by as much as 30% or more. At least with eminent domain, the property owner is supposed to be given a fair market value. Here, with rent control, a landlord is hemmed in and cannot sell. They are essentially taken prisoner. Their property is permanently contaminated and made less investible. Laws and regulations, too, make it almost immune from a change of ownership. Sales slow down.
(Excerpt) Read more at americanthinker.com ...
Because of the housing crisis in LA, it is much cheaper to buy a home than to rent. Problem is: the down payment. But the rental price each month is formidable.
This will work out as my Econ 101 professor predicted. Those who vote for it deserve the housing shortage and limited maintenance that they will receive. I feel sorry though for the decent people who will, as usual, become the victims of liberal policies.
Just wait until they start taxing ‘accumulated wealth’.....already taxed money, trying to earn interest. Socialism is alive and well in California
When landlords stop re-renting when a tennant moves out because of the regulations, then what will the snowflakes do?
Utterly predictable result of the way in which economics are NOT taught in our public schools.
Once the Cold War ended we stopped teaching why Socialism was NOT a good idea too.
Otherwise known as "a Democracy."
It is sad that we have let the State with the most abundant resources and the best climate, get taken over by a bunch of leftist loons and illegal immigrants. Oh well...
Move back to mom & dad's basement?
NYC has 75 year history of meddling with rents.
Result : 1%ers living on Central Park West in $10 million apartments for $350/month at same time some poor working stiff in Queens pays $3,000/month
> Move back to mom & dad’s basement?
We are downsizing, not only to make life easier in a smaller, lower maintenance setting, but to make resettlement by adult kids impossible.
Rent control will bring down those pesky property values/s.
Calls for rent control are a symptom of a housing shortage. Maybe if there were fewer Mexican nationals in California there would be enough housing for Americans in California.But the effect of rent control is to limit the quality of housing by inducing landlords to skimp on maintenance. You arbitrarily limit the rent which can be charged, you ineluctably limit the value of the property being rented. And landlords are not so foolish as to pay to maintain the quality of the property above the legal limit on its value.
And efforts to prevent landlords from reacting rationally to rent control simply drive the value of rental properties even lower.
Rent controlled buildings worked out so well in New York City in years past. The fiscally sound policy of the property owner was to “milk” the property, by deferring maintenance and declining to provide other services, while the practice of subletting by the designated renter for a payment much larger than the controlled level of rents.
Utopia! /s
The problem is, most people in CA don’t sell and relocate here to a “better” property because of punitive taxes on their new property. if they’ve been in their homes for decades they’re taxes are pretty low. But if they sell and relocate in CA, they’re punished by insanely sky high taxes.
This is just another reason why there is little or no housing available in the state.
Actually, that’s the last nail in the coffin for that place as far as I’m concerned. I really don’t think I’m going to go looking for products from CA if I can help it.
No kidding!
“We are downsizing, not only to make life easier in a smaller, lower maintenance setting, but to make resettlement by adult kids impossible.”
BOL! A couple in their mid to late 40’s just did what you noted. They moved from a 4 BR home to a barely 2 br home.
They have two very smart kids one is a senior in highschool and one is a Junior at Stanford.
However, both kids are or will be in IEDs, Instant Unemployment Degrees.
The adults have told the the youngest one, that her BR becomes an office for the parents as they will be working from home as soon as she starts college this summer or in the fall at the latest. When, the oldest one visits from college, he gets an air mattress and a sleeping bag. Their new home has 1.5 bathrooms versus the 3.5 before.
My wife couldn’t understand this. I pointed out that our adult children after college or trade school have only visited during holidays after a one or two night stay to gather their stuff after finishing trade school or college.
They some times plan a one day visit on a weekend day.
My wife belongs to two bridge groups an a bible study group with several other women her age. The group is divided with adult children that still live at home or are on their own.
These stay at home adult children are in their late 30’s or ealry 40’s. Most of these homes are not happy ones.
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